Monday, December 29, 2014

FHA 203k is Just Another Renovation Loan

and it works allot like the the HomeStyle Renovation Mortgage by FannieMae. What is the major difference? Simply PMI - Private Mortgage Insurance. If you have good credit and are putting 20% or more down on the property there is NO PMI with the FannieMae renovation loan versus the FHA 203k having PMI for the term of the loan.

So before you tell your client to get into a home with as little money as possible... think about your liability. I know you told them the roof might leak but if it turns out to leak... mmm, you just might get sued anyway.

When your client decides to use a renovation loan I would encourage them, if they can afford it, to get the work done, all of the work so they don't become a slave to the house. Don't spend every waking moment living on a construction site. Let the pros repair your home and enjoy what you have.

While people are enjoying that new home in Fort Pierce FL please meet Pete Campbell if you haven't already met him.

Friday, December 26, 2014

The Benefits and Drawbacks of FHA Loans

During the years after the housing market crisis of 2007, the FHA loans enjoyed great popularity among home buyers. Now as the economy is improving while the interest rates remain low, they are facing growing competition. The general trends are always important, but when you have to make a decision on whether to get such a loan, you need to focus on the facts. Here is a detailed evaluation of these types of mortgages. It will certainly help you make up your mind.

Understanding FHA Loans

The abbreviation stands for Federal Housing Administration. This is the Federal Government agency responsible for insuring the mortgages. That is why they are called FHA loans. It is important to note that the Federal Housing Administration is not a lender and does not issue mortgages. It backs them up with insurance. It works with a multitude of approved lenders that provide the actual house financing products, which are accessible to all qualifying American citizens.

The Good Things

There are two main benefits of FHA loans which the other mortgages do not offer. It is worth looking at them in greater detail.

Lower down payment - With these mortgages, the minimum down payment requirement is 3.5%. This means that you will be able to quality for financing even if you have modest savings. For comparison, most conventional lenders require a down payment of at least 10%. Some may offer products with 5% down payment, but these are typically harder to qualify. You may be required to present evidence of bank reserves which would allow you to make the mortgage payments for a set period of time. Simply put, these loans require the lowest possible down payment.

Lower credit score requirement - Far from perfect borrowers can secure an FHA mortgage with ease. The official minimum credit score requirement is 580. Over the past few years, lenders kept their minimum score requirement higher at around 640. Now the biggest players in the market have announced that they have lowered their minimum requirement to 600 and others will certainly follow as well.

The Bad Things

The FHA loans are easier to get, but are they affordable? They may actually not be the most cost-efficient solution.

Potentially Higher Cost - Home buyers who make a low down payment will have to borrow more money to finance the purchase of a house and this will result in higher interest payments. These push the total cost of the loan up and the size of the monthly payment as well. Furthermore, borrowers with lower credit score can expect to pay higher interest rate.

Costly mortgage insurance - All such loans are backed by the government and borrowers are responsible for paying insurance premiums. There is an upfront premium of 1.75% of the value of the mortgage. Currently, the annual premium ranges from 0.45% to 1.3% of the mortgage amount depending on the term and on the initial loan-to-value ratio (LTV). If the initial LTV is higher than 90%, which corresponds to down payment lower than 10%, premiums have to be paid during the whole term of the mortgage.

Overall, the FHA loans are a good choice for people with limited means and less than perfect credit score. Others should consider conventional mortgages as well.

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Tuesday, December 23, 2014

Saturday, December 20, 2014

Mike Young: What’s My Line? | FHA 203k Consultant

Photo of Mike Young


Who is Mike Young and what does he do?

Mike Young is a FHA 203k Consultant. 




 

What does an FHA 203k Consultant do?

  • Meets with clients and “consults” explaining the program
  • Reviews the contracts and procedures so there are no problems during the course of construction
  • Makes the FHA 203k compliance inspection to determine what it will take to bring the structure up to the MPS (Minimum Property Standards). This includes mandatory repairs such as ceiling insulation, caulking, weatherization, grading, etc.
  • Recommends contractors and lenders if they client does not already have them selected
What is the difference between an FHA Consultant and a Home Inspector?
 
A  home inspector and a 203k consultant can be, and quite often are, the same person. There is really no difference in the home inspection and the consultant’s 203k compliance inspection.

The inspections can be the same inspection. The home inspector quite often creates a “deficiency report” that can be the basis of a 203k report as well.

A typical home inspection might take 3-4 hours and a typical 203k compliance inspection might take 1-2 hours. During that time the home inspector will find deficiencies and suggest further inspections by the appropriate trades persons  and rarely is allowed by state licensing to “price the work”.

On the other hand the consultant does just that, they determine the issue, determine the repair, create a “scope of work” or “scope of renovation” and provides typical costs to repair those items. This is in direct violation of most state licensing “standards of practice” for home inspectors thus the difference between a consultant and a home inspector.

Mike Young can help any buyer in any state, in any city or town.  Mike is licensed by HUD to be an FHA 203 Consultant in all states.
 

Do FHA 203k Consultants charge a fee?  

The answer is, Yes. Nationally a typical fee for a 203k consultation is between $600 and $700, plus mileage. That isn’t very much for the responsibility assumed. The fee can range from $400 to $1000, plus mileage, for the consultation, but on larger projects additional fees may be incurred. Of course, one would need to contact Mike Young directly and get a fee quote specific to their project.  Clearly, one size does not fill. 

Are there any pitfalls or downsides to FHA 203k loans? 
As with anything in life, even with the best laid plans, things may not go according to plan. If you are having issues with a 203k loan anywhere in the USA contact 203k911.com for some direction and resolution to your issues. The best course of action is to first hire a consultant to ensure the project does go smoothly.

The Mike Young Team represents a group of FHA 203k and Fannie Mae HomeStyle Renovation consultants specializing in renovation loans nationally. No job is too big or too small for Mike and his team.  They recently helped a person in KS who couldn’t find a consultant due to state laws being so restrictive.  They were able to help the person's lender get the loan closed with little delay.

Another person called from CT asking if they could move a historic type home from a lot in VA to a new location in CT. The home was to be placed on a barge and taken to the new waterfront lot in CT.

The 203k program is amazing. Open your mind to the possibilities, or contact The Mike Young Team and they will open it for you.
 
Mike Young: What’s My Line?  |  FHA 203k Consultant  by Kathleen Daniels, San Jose Homes for Sale - San Jose Short Sale Agent - 408-972-1822

Wednesday, December 17, 2014

The Skinny On FHA Loans

The FHA, or Federal Housing Administration, provides mortgage insurance on loans made by FHA-approved lenders. FHA insures these loans on single family and multi-family homes and has insured tens of millions of properties since it was created in 1934. It's important to note that the Federal Housing Administration does not issue the home loan - this is done by your mortgage lender. However, if you default or stop making your mortgage payments, your home loan lender receives financial recourse from the FHA, therefore reducing the lenders' risk and making them more willing to loan money, while also keeping borrowers' costs down.

The combination of low rates, low down payment, and flexible lending guidelines have made it one of most attractive loans for home buyers today. It may help you save money and possibly qualify for a larger mortgage.

Credit

The FHA is more lenient and understanding about credit issues and personal problems. If you had a previous bankruptcy, you can usually get an FHA loan only two years after the discharge date. If you had a foreclosure, you'll have to wait 3 years to apply. If you had late payments within a distinct time frame and had a good payment history the rest of the time, they may overlook that. Collections are usually not a problem. However, you will not be eligible for the FHA loan if you have had federal liens such as tax liens or defaults on student loans. Your credit score needs to be only a 620 when putting down the minimum three percent unlike other conventional loans that require a score of no less than 680 and sometimes in the 700s.

Down Payment

The super part of the FHA loan over conventional loans is the low amount of cash needed at closing. With an FHA mortgage, you can make a down payment as small as 3.5%. This benefits those home buyers who don't have a lot of money saved up for a down payment; and, home buyers who don't want to give up all their cash, but would rather save some of their money for moving costs or emergency funds.

Few loan programs will allow your entire down payment for a home to come from a gift. The FHA loan program allows your entire down payment to be a gift from a parent or relative an employer, an approved charitable group, or a government home buyer program.

This program will also allow seller concessions. This means you can ask the seller to pay up to 6 percent of the closing costs. Closing costs are additional expenses associated with buying a house such as; loan origination fee, title search fee, recording fee, survey fee, prepaid interest, prorated taxes, and insurances.

Rates

FHA loans have very competitive rates, which means a lower payment each month. Having a lower interest rate means you will pay less over the life of the loan.

Debt to Income

The FHA loan does allow a high debt-to-income ratio. Having a car payment and student loans will still allow you to qualify. Still feel that you can afford the payment? The FHA will allow a maximum of 43 percent debt-to-income ratio, whereas conventional mortgages allow a maximum of 36 percent debt-to-income ratio. Figure your debt-to-income ratio by adding up all of your current debt, including your proposed new mortgage payment (including taxes and insurance), and divide it by your monthly income. The answer will be your percentage.

Basic Documentation Required To Apply

Copies of paycheck stubs for the past 30 days

Copies of W-2 forms or 1099 forms for the last two years

Complete tax returns, including all schedules, for the past two years (if self-employed)

Copies of all bank statements and investment account statements for the past two months

Identification (driver's license, passport, or military ID)

Year-to-date profit and loss statement (if self-employed)

The FHA is pretty lenient about whom they will lend to. If you meet the credit requirements, have the 3.5 percent down payment, and have steady employment, you will probably be approved. Like any other loan, you will be required to provide all information related to your assets (personal property, cash in the bank, and investment account statements), which helps lenders determine the source of your down payment and closing costs. All-in-all, it can be an easier process than a conventional loan.


Let's do it YOUR way! Buying a home in Kokomo or Lafayette areas? Let me know your dream home and the kind community you wish to live in. Tell me your wants and needs. Let me know what's important to YOU, and we'll find the community and home that you desire. Selling your home in Kokomo or Lafayette Areas? Let me help you to make you the most money possible in the shortest amount of time. I offer sellers a professional, written marketing plan, the most progressive marketing strategies in the industry, consulting, and staging. I am a mobile agent committed to helping you around YOUR schedule. Can't drive to my office? No worries... Let me come to you. I am here to help YOU make this transition and this transaction as convenient and smooth as possible. Gena can be reached at 765-210-5582 or you can email her at genamartin71@yahoo.com. You can also visit Gena's website: http://www.homesforsalekokomo.com
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Sunday, December 14, 2014

Permit Fees for a 203k

Most projects will require one permit or another. This week we have had a couple comments from contractors as they attempt to put them into the line item bid form under "miscellaneous".

A couple were quite adamant about doing it that way and it isn't going to happen per the HUD Guideline. The guideline states permit fees, architectural and engineering fees are to be kept out side the line items in the bid.

It is done this way so these fees can be paid out at 100% with no hold back. Any of the "line items" if they could put it there would have a 10% hold-back. If we put them in a line item then input them where they should be the borrower would be paying for them twice.

What I think it really boiled down to was the contractors wanted to see their mark up for profit and overhead on those expenses since they were paying the upfront money for those services and rightly so.

The guideline and more-so the lenders have determined they will only pay the exact amount of the permit fees and/or architectural and engineering fees and NO MORE.

I suggests your contractor figures out how much that profit and overhead would have been, take that amount and add a line item in the bid called "permit processing fee" - this is the cost for the time the contractor sits at the inspection department waiting for the permit to be issued or meetings with the architect or engineer to get things resolved. He is entitled to get paid for his time and this has been a good solution that still keeps things within the guideline.

Yes, I know there is another instructor, and maybe more, out there telling consultants that is is okay to put these fees into a line item but "beware" you can be sanctioned and removed from the list for doing something that it outside the guideline. It is your career at risk not theirs.

Thursday, December 11, 2014

Renovation Doubles Home Value



A large renovation budget doubled the value of this older Colonial home.

Monday, December 8, 2014

203k Feasibility Report for a Buyer

What is a 203k feasbility report?

A buyer is looking at a home that needs substantial work... how much will it cost to make those repairs? That is the big question. If it costs $50,000 then we have a deal, but if it costs $150,000 this isn't the property for this buyer.

Solution: Have a contractor provide a cost to make those repairs, an estimate. What do you do with that estimate? Use it to make your offer.

Why would you use a "consultant" to do that same estimate? Simply this, a contractor might miss the obvious additional repairs and only provide you with a bid to cover the major issues. The minor issues can also add up to your demise. The second reason is the consultant will provide the bid overnight while the contractor, in most cases, may take a week or more.

Learn to use the right tool in your toolbox, the contractor and the consultant are just tools at your disposal, use the right one that fits your situation.

Friday, December 5, 2014

203k versus HomeStyle Renovation Mortgage

These two loan programs each have their place in your business. When do you know which one is the best for your client?

FHA 203k typically is for lower credit scores or clients with smaller down payments or both. Loan limits in many Bay Area Counties is up to $625,500 for a SFR and over $1.2MM for a fourplex. That should work on a four-plex in Marin County.

Where can you get financing for a "mixed use building"? Easy, the FHA 203k comes to the rescue. These are all 3.5% down... mixed use loan with 96.5% financing. That is fantastic. This is an "owner occupied" loan program.

Why would you use a HomeStyle Renovaton Mortgage?

A little higher down payment, about 5% instead of 3.5%. The big difference is there is no PMI, private mortgage insurance.

This product can be used for second homes and investor properties. You already own a rental and it was trashed after the last tenant moved out... this might be the loan program for you.

My client is buying a fixer for $1,250,000 or more... 

I am dealing with a home that has a purchase price of $1,250,000 and it needs lots of work. My client is putting allot of cash into the home.  This is perfect for a 203k or HomeStyle Renovation loan to get up to $625,500 to make the repairs.

The HomeStyle Renovation Mortgage is for people with good credit that need money for their renovation project. Some use it to purchase and renovate their home others use it to refinance and renovate their home. If you have sold a home in the past few months that needs repairs, you could be the hero and let that client know if they need financing to make those repairs we have some low interest money fixed rate for thirty years to solve that problem.

There are some other products out there that secured by a second mortgage if you need up to $75,000 to complete a project and ran short of funds.  I just heard about an unsecured loan product that will provide $40,000 to complete a project. Lots of stuff coming up in the new year.

Tuesday, December 2, 2014

Can the Owner Supply Materials for the Contractor to Install on a 203k

Not really, in the case of the owner providing a washer and dryer and the contractor installing the plumbing hook up that isn't an issue but the washer and dryer don't affect the value of the property anyhow so it just wouldn't be mentioned in the scope of work at all.
One home owner we know wants to provide all of the materials to keep his loan amount down. The way to do that is to increase the down payment to cover those items but he is also trying to keep from paying a contractor markup on those items he was willing to go pick up and deliver to the site for the contractor. 
This shouldn't be done. As a consultant, what if the borrower/owner doesn't fulfill their part of the bargain, HUD says we have to have enough money in the project funds to get that done without relying on the owner's participation. We have to be able to get the work done regardless and this scenario doesn't allow that if the owner's circumstances change and they are unable to provide those materials. 

Therefore the answer is a big "NO" regarding "owners to provide" as the owner's can't provide anything in the scope for the contractor to install. The appraiser gives no value to an item provided by the owner... which in the case of a washer and dryer wouldn't have an affect but if the owner was providing all the kitchen cabinets and counter-tops, the appraiser would have to ignore the value for those items and the property might not appraise high enough to get the loan. There are just too many reasons this doesn't work.

Saturday, November 29, 2014

Where Do I Get Help With My 203k Problem Contractor?

As smooth as most 203k projects go I hate to write this post. There is about one in a hundred that become what we refer to as "the 203k from hell" because no one seem to get along.

We had one years ago that three days before the project was to be finished... just three day and we are done... the contractor brought his foul mouthed wife to the project to show her what he had done. Holy cow, from that moment it went down hill fast. Up till then everything was going very smooth.

It turns out her mouth was a "gutter mouth" and she started using the wrong terms to describe his work and it offended the owner's wife who was living in the trailer just outside when she heard F this and F that describing her new home. It was all good just bad choice of words and to a religious person it was about to blow sky high. The owner asked her to leave NOW and that she didn't appreciate the language being used in her home. The contractor's wife being from the gutter didn't take kindly and finally the owner kicked them both off the property. The contractor was fired and not allowed to complete the small amount of work left, ever.

We took another month to find an acceptable contractor to complete the project but who would have guessed that could even happen? Not me. There was no resolution, they weren't going to be allowed back into the home for any reason. Up till then the project had gone very well.

Who knows what that "last straw" might be?

What happens when there is $30,000 in work completed for the first draw and...? 

...and none of the work done was listed on the scope of work? YIKES! This luckily hasn't happened to me but it did happened to a friend of mine in NJ and twice in three weeks. My question to him the first time is how was he going to pay it out? He answered correctly... "I can't pay for any of the work that was done as it isn't' on my list of repairs" - that is exactly right.

When it happened the second time, I had to question his consulting procedure. It seems to be flawed. You need to be very clear on staying with the "scope of work" as outlined in the bid specs because that is what the appraisal was based on and it MUST BE COMPLETED, it isn't an OPTION.

The house is much nicer than our scope of work laid out...

How do you handle that? I did have this happen on one of my projects and I was shocked to see the home was much more than anticipated. The borrower didn't want a draw, the bank called for it to see if anything was progressing. That is their option and obligation under the HUD Guideline. When I arrived it was so much more house. I couldn't believe my eyes. No permit on site, just did the second lender mandated draw and there is still no permit on site. PERMITS MUST BE POSTED AT THE SITE FOR AN INSPECTOR TO SEE ANY TIME THEY COME BY. This is also no an option. The lender was going to call and see if there were permits taken out. I haven't heard yet.

203k 911 is our solution to your problem 203k project

We have completed so many 203k projects that we have seen most everything that could happen, happen. We dealt with it and resolved it. There was some times where I stepped in and mediated for other consultants live and in person... to mutual benefit of all concerned. It actually helps us all to resolve issues amicably. The lender, the borrower, the contractor, all benefit from these services so we now have a place to go to help get these issues aired and resolved in the least costly manner. It is 203k911 and it works all over the country.

-Mike Young, 203k Team Leader 

With offices coast to coast and HQ now at PMB 168, 5055 Business Center Drive, Suite 108 Fairfield, CA 94534 1.707.812.7668. We have fourteen offices in CA covering both CA states, NorCAL and SoCAL where we can cover the entire state. 

To learn more about the FHA 203k loan program go to www.203kOnLine.com. To contact us for a consultation please go to www.my203kconsultant.com and "order a consultation".

Wednesday, November 26, 2014

Happy Thanksgiving!

Wishing You and Your Family a Safe and Happy Thanksgiving!


Sunday, November 23, 2014

Renovation Loans - Some Get It and Some Never Will

I've been doing renovation loan and construction consulting since 1994 and found it to be a very rewarding experience and we move a whole lot of homes that wouldn't have been moved in any other way.

Daily I hear Realtors say they have never done one after thirty years in the business, others have been told by someone years ago that you should stay away from renovation projects. I love this one because in some cases they told you that so you wouldn't poach in their territory. Beware of those who might tell you to stay away from the FHA 203k and be sure it isn't because the want it all to themselves.

1) You have a home that your buyer wants that is dated, very dated. There appears to be no updating but gee, it is a nice home otherwise. In my opinion you would be doing a disservice to them not to make them aware of the potential for a renovation loan and put them into that home fully restored or updated, but that is my opinion.

2) The work all happens after it closes escrow so it doesn't affect the Realtor or slow up the process of closing.

3) The buyer gets a 10% push on the appraised value and it is based on the work being completed.

4) You can actually sell them the home, close the loan and then suggest they get a 203k refinance. The kicker here is that if they close the 203k loan within six months of buying the home they get to count all of that money they put down as money they have into the project for the purposes of the new loan making it possible to get the construction money with NO MORE MONEY OUT OF THEIR POCKET.

5) The 203k is just another tool in your tool box that you can very effectively use now and again, it doesn't have or need to be used on every home but it can sell a home for you that otherwise might be skipped over.

If your office needs some training on the programs that are available please don't hesitate to call our team, we are happy to provide you with all the info you need to know to make you proficient and confident that you can get these closed.

Donna in SC closed her first full 203k in 21 days many years ago and continues to do so. Why can Donna do this and others tell you it will take sixty days? Simply because she did her first one with a seasoned team and realized early in the game that it is the Team that makes the difference. Choose your Team wisely and we hope it will be our Team.

Thursday, November 20, 2014

The Most Common Regrets of First Time Home Buyers

Are you a first time home buyer? Sometimes, after closing the deal, home buyers report several regrets which probably could have not occurred if precautions and proper preparations are made. Here are some of the common regrets of first time home buyers which we hope you could avoid if you are pursuing your dream of owning your very first house.

34% wished they negotiated more

Negotiating with the seller is an integral part of the home buying process. First time home buyers are usually delighted with the price tags such that when they offer the price they want and the seller agrees - they give in and agree to close the deal. Yet, after the closing 34% wished they negotiated more to obtain lower prices.

40% wished they should have cashed out more for the down payment

Buying a house for the first time involves shelling out significant amount of money for its down payment. However, 40% of the first time home buyers usually pay down payment as what is the convention. This percentage wished they should have cashed out more because it will lower their monthly dues.

38% found it costly to maintain a home

As soon as the first time home buyers move in to their purchased homes, 38% found out that home maintenance is costly. There are a lot of things involved to make the house appealing, functional, and stylish as the owners wanted the house to be. Apparently, many first time homebuyers are not prepared with these kinds of tasks. Their budgets aren't prepared to for such maintenance processes.

25% found out they don't like the neighborhood

After moving in to the house, a quarter of the first timers wished they looked for a better neighborhood. The beauty of a house is not just the sole factor that home buyers, especially first timers should look upon and evaluate. The neighborhood is also a critical value. The quality of the neighborhood and the kinds of people living there will constitute a great part of your daily life.

24% revealed regrets with regards to their yards

The yard, although an outside part of the house, is essential because it can serve as playground to the children. It can also become part of the recreation of adult family members especially the garden part. Despite this, 50% of those with regrets wished for a smaller yard because of the difficulty associated with its maintenance. The other 50% wished for a larger space because of more plants they wanted for their garden. Some of them also want to put outside furniture.

These are some of the common regrets that first time home buyers have. With the information discussed herewith, it is hoped that you will avoid them by taking into big consideration what you really want in a house.

Desare Kohn-Laski is a proud realtor and experienced Military Relocation Professional in Florida. She is a real estate broker who is knowledgeable and familiar of the South Florida real estate market. Her areas of services include Broward County, Palm Beach County & Miami-Dade County. Stop the chase for your dream house with her professional and expert assistance. For more information, hop on to http://www.skyelouisrealty.com.
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Monday, November 17, 2014

Homes For Sale: Short Sales and Distressed Property Buying Tips

Buying foreclosed property is a little different from buying typical homes for sale. In most cases, only one real estate agent is involved, and the seller wants an approval letter from a lender before considering an offer. There is rarely room for negotiation, and the property comes "as is," with repairs left to the buyer. On the positive side, foreclosed homes are vacant, which speeds up the process of moving in.

Buying a foreclosure is definitely a grind. It's not for the squeamish. But in doing so you can find prices on real estate that would otherwise be unsuitable for your budget.

What Should I Do First?

The first step in buying distressed property is two fold and should happen simultaneously: 1) get a preapproval letter from a lender, and 2) find an agent who specializes in flipping foreclosed property.

You can accelerate the first step by visiting real estate websites that contain foreclosure databases. You can also visit local websites that allow you to filter the results to see only foreclosed properties. Look for the acronym "REO" (Real Estate Owned), which means it's owned by the bank. That means the home has been through foreclosure. It's for sale!

The goal of perusing through databases isn't to find home for sales, per say. It's to find a local agent. Banks generally hire one or two of these to handle all of their REO properties in a specific market. In many cases, buyers work with real estate brokers and not agents. That means the commission generated by the sale goes to one person, not two.

Most brokers have long established relationships with the banks. It's good to find out who they are and where they work. You can find out who they are by contacting your local real estate company.

What's Next?

Some banks want strong offers, while some want strong buyers. This is contingent upon the bank's preference, not the agent's. The bank may choose the most appealing buyer, which can mean different things depending on the bank. Some banks may make their choice based on the size of the down payment. Though offering large cash payments may bring down the asking price, it's not typical. The best thing you can do at this stage is surround yourself with a solid team from a real estate agency.

Close On Time

There is no leniency in a short sale's closing escrow date. Exceptions are rarely made and you must close on time. Therefore, it's important to take care of all paperwork immediately after opening the escrow. Set your loan closing date with the bank ahead by at least 2-3 days of the closing date. Clearly document each step, because if you do need to ask for an extension, the bank is going to want to know that all criteria were followed to the T.

Short sales, foreclosures and distressed property provide great ways to find new homes for sale. First-time homebuyers purchase around 33% of these kinds of properties. It's becoming a booming market for young buyers and for those deciding to ditch their rental keys in favor of ownership.

Be sure to contact an experienced real estate broker today about purchasing your dream home!

Robertson Homes is Mobile, AL residents' go to place for beautiful homes for sale. Learn more at http://www.robertsbrothers.com/.
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Friday, November 14, 2014

What To Know Before Buying A Fixer-Upper Property

If you want to purchase an inexpensive property, you can check out the several fixer-upper properties. These properties are cheap but they need some repairing. This is why you have to take note of essential things before purchasing such properties. Below are some tips:

1. Have the property inspected by a professional. This is crucial no matter how cheap the property is. You have to know the work to be done and the money you will spend on repairs. Always remember that there is something more than what meets the eyes. The sunken floors could mean a floor replacement all together. Insulation may be worst and you have to redo the entire house. Have the property checked and review the report thoroughly.

2. Be ready to walk away. Homes are not school projects that you can easily finish. These are investments. If you purchase the wrong property, you have to live through it for a while. You would not want to spend a lot of money on something and regret it afterwards. if the house has more damages than what you can manage, walk away. There are more homes in the market.

3. Be wise in making an offer. You do not have to impress the seller with making a good offer. Remind yourself that buyers have the upper hand today. You can make a low-ball offer and sellers will still consider them. You might not get the property for the initial offer made, but you will get a pretty discount on the property. If the seller refuses to sell you the property, then move on. Again, there are more properties to choose from. You do not have to settle.

4. Prepare a realistic budget for repairs. Do not underestimate the expenses you will incur for repairs. As mentioned earlier, things are not always, what they seem. A small hole on the roof could call for an entire roof replacement. The scratches on the wall might need more than just painting. It would be great to add a little extra on your original repair budget.

5. Find good contractors. You will need them especially if you are not familiar with doing the repairs and renovations yourself. When looking for contractors, make sure that they have good reputation. Work with someone who has a nearby office. Do not make up front payments. You can pay a percentage as the project starts and pay off the entire amount once the project is done.

You can land a good deal for fixer-upper homes. However, you have to make the necessary preparations before you buy one. First, it is essential that an inspector checks the property. You should have an idea of how much it will cost you to make the essential renovations and repairs. If the state of the property is more than what you can chew, then walk away. There are several properties in the market today. Take note to be wise with the offers you make. Giving low offers is not bad at this point. After all, you need to overdo your budget for repairs to make sure that you get everything fixed. See to it that you find good contractors to get the job done as well.

Consider the Payson Real Estate and the Bank-Owned Homes in Payson for your next home.
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Tuesday, November 11, 2014

203k Consultant and Lender Software Version Update

 By

Our latest update has just been uploaded to our website for all lender and consultant users. Please go to the site, if you are already using v11 then this is a free upgrade.

Thank you for your continued support. We appreciate your business.

If you are a lender and want to test drive the software for your Streamlined k loans you may also download and install the software to start your free trial.

Are you a LO and have to fill out all those forms, you may save hours of your time by using our software. Kick the tires for FREE during the trial period.

Saturday, November 8, 2014

Change of Heart After Remodel



The husband changes his mind when his 'cookie cutter' home is remodeled.

Wednesday, November 5, 2014

Self Help Under the FHA 203k Loan Guarantee Program

By

Yes, there is a provision for "self help" under the FHA 203k program but they aren't carte blanc. Some lenders allow self help ONLY if the borrower is a licensed contractor in the state where the project is located. Many lenders DO NOT ALLOW SELF HELP at all, under any circumstances.

203k Self Help project

To make a long story short, it isn't advisable to use the self help provision of the program as most lenders that might allow you to do self help will make the accounting so difficult that it just doesn't make sense. Too much paperwork and accounting.

In any case if you should find one that allows you to do self help you cannot be paid for your labor, this is not a cash out program. You can be reimbursed for your materials cost but NO LABOR will be paid out instead it can pay down on your mortgage.

Sunday, November 2, 2014

Best Mortgage Deals: 203(K) Renovation Loans From FHA

Want to add value to a home? Some of the best bargains are properties in need of repair. The FHA 203(k) mortgage includes the cost to purchase or refinance and make repairs in one loan. This allows home buyers to borrower more than the sales price in order to make repairs if value increases. Borrowers are guided in the process by a certified consultant.

Since the mortgage is government backed, credit terms are more flexible and loans are allowed up to just over 95% of the property's after-improved value. These loans offer competitive interest rates.

FHA Lending

The Federal Housing Administration (FHA) guarantees mortgage loans. Borrowers not eligible for non-government, also called conventional, financing may be eligible under FHA's more flexible underwriting guidelines. FHA also allows the seller to pay a part of they buyer's costs, allows down payment assistance from family, close friends or nonprofits, and has competitive interest rates.

The minimum borrower investment of 3.5% is a welcome contrast to the up to 20% some conventional loans require. The loan can also be used to refinance owner-occupied properties. The 203(k) loan is no longer available for investors.

The 203(k)

The FHA 203(k) offers the following advantages:

- Repairs are included in determining the after-improved value. The maximum mortgage is based on the home's value after improvements are done;

- HUD Certified Consultants oversee home improvement from cost estimating to inspections. Contractors sign a written agreement to comply with 203(k) requirements. Changes to approved work, if any, must be deemed necessary by the HUD Consultant and approved;

- The lender's escrow department disburses funds only after work is completed and inspected;

- Borrowers can finance up to six mortgage payments if the property is uninhabitable during renovation;

- The escrow department will ensure there are no mechanic's liens before final payment is made to the home improvement contractor.
Disadvantages:

- FHA loans charge mortgage insurance upfront in addition to a monthly premium;

- Contractors are paid after each stage of work is finished, usually in three to five installments, so they must have their own funds to get the work started in most cases;

- Underwriting can take longer due to the need for coordination between homebuyer, contractors, the Consultant, and special renovation lending teams;

- An extra appraisal and a HUD Consultant fee must be paid upfront. That is an $800 to $1,500 additional expense.

Finding a Lender

Since so much is involved, be certain your lender is familiar with 203(k) requirements. Ask your Mortgage Loan Officer for details. You can visit HUD's website, http://www.hud.gov, and search "find a lender." Be sure the 203K box is checked on the Lender List page.


Kenneth Bossard, MBA helped hundreds gain loan approval and find cash to buy homes. His twenty years mortgage finance experience includes work as a mortgage lender, nonprofit housing counselor and licensed Realtor. Ken's techniques are revealed in an eBook available at [http://www.RepairRuinedCredit.com]
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Thursday, October 30, 2014

Become Part Of A 203k Team

I've always looked at the 203k as a team sport, even when I first got involved with it. When we put out our audio tapes in 1998 we even discussed it.

You are only as good as your 'team' in any case. If your consultant can't write a good report, the lender won't have much to work with and on the other hand if the lender can't get the loan closed it doesn't matter how good the 203k consultant writes the report.

This is true of the rest of the team as well. Your teams each should have a Lender that can close an FHA loan, even a 203b quickly.

Our trained 203k consultants will provide 100% of the 203k portion so the lenders can take our MMW and use it to help them fill out their form... it is their responsibility but we try to make it easier for them.

If we all do our part of the project and then pass the baton to the next team member this frees us up to get the next project started.

Example: A 203k loan may begin anywhere by any one of the team members. We quite often get calls from our websites or the HUD website from a borrower... we immediately asses the situation and more than likely we'll send them to a lender to get that process started.

They may already have a property, that is okay, we still need to get that lender take on the borrower to be sure they are credit worthy. Not wanting to waste time or the borrower's money we need to verify they have the ability to get the 203k loan going.

If they don't have a property then we suggest a realtor or agent to help them find one in a neighborhood of their choosing.

We may actually start consulting to determine what type property they might want. There are several possibilities in this realm.

Once they locate a property suitable for their needs we set up a 203k consultation and inspect the property to create the 203k bid specifications.

Once those 203k specs are complete the borrower should look them over to be sure everything looks like they want it. Then they go to the lender.

The lender takes the 203k specs and provides that information to the appraiser and the appraisal is completed with an 'after improved' value. Once we reach this point the loan should close within a week or so typically.

Once the loan closes the borrower needs to get that information to the contractor so they can get that project in their schedule.

This is an important step as this is the only way the contractor has of learning the loan has closed.

They have up to 30 days to get their first draw inspection but in most cases they will have someone start long before that. In many cases they will start within a few days of your closing the loan.

We look forward to helping you build your 203k business.

Know that this is much more than just 203k, you will be trained in all renovation loan products that you can also consult on.

You will have access to our marketing materials and power point presentations to increase your "Referral Partner" Base too.

We have referral partners that provide a considerable amount of work for us in the FHA 203k loan program.

We'll show you a way to finance 80% of the pool repairs or even add a swimming pool to a home that doesn't have one.



To place an order go to www.my203kconsultant.com 
Mike Young, 203k Consultant
1.707.812.7668
Cell phone 1.704.451.1599

We now have offices in

Charlotte, NC
Columbia, SC
Charleston, SC
Denver, CO
Detroit, MI
New York, NY
Los Angeles, CA
Santa Barbara, CA
Austin, TX
Dallas, TX
And we are growing our business!

Monday, October 27, 2014

FHA 203k Rehab Loans and VA Loans - Mortgages For the New Economy

Are you searching for a home and disappointed by the options available? Perhaps the home you can afford is too small for your requirements, or in need of extensive repair or upgrades. Two important federal government loan programs may be available for home buyers who qualify. These include VA Loans (Veterans Administration) for military personnel who have served in the Armed Forces and a 'fixer upper' loan, the FHA (Federal Housing Authority) 203k Rehab Loan. These two loans are reliable financing options for the new economy.

The FHA 203k program requires the home buyer use the property as a primary residence. The FHA 203k rehab loan cannot be used for investment property. The only exception to this rule is if the buyer is a qualified non-profit.

VA Loans are also designed for those seeking mortgage financing for their primary residence. New regulations for the VA Loans include lower credit scores and 100% financing.
Home Buying Guidelines for FHA 203k Loan Program

In the present real estate market, foreclosures are common. Many properties have been sitting empty or they were not properly cared for when owners lived in them. These properties are functional living spaces in need of repair or renovation.

Money is tight and home buyers are unable to obtain additional financing in addition to their mortgage for repairs and renovations. In response, the federal government has created the FHA 203k Rehab Loan so additional resources are available to qualified home buyers. "This is the only loan that some home buyers can afford when purchasing a home that needs renovations," says J. Mansisidor, V.P. Branch Manager of SunTrust in Williamsburg, Virginia.

The 203k Rehab loan adds another layer to financing a home. After a property is selected by the buyer in a desirable neighborhood, the agent conducts a preliminary feasibility analysis. This analysis lists repairs necessary, and tallies the cost of rehabbing the property. The real estate agent also estimates a final market value on the home after repairs. The feasibility analysis needs to be conducted prior to ordering appraisals or estimates, to determine if the cost is too high to make the purchase worthwhile for a home buyer and the lender.

The real estate agent and buyer will execute a contract to purchase the property if costs of repairs and home purchase are aligned with current market values. A home buyer must have a sales contract in order to apply for a 203k Rehab loan. Within the contract there is a clause stating the sale will be contingent upon financing through the government lending program. Home buyers apply for the 203k Rehab loan through an approved HUD lender. Once the application is complete, the buyer obtains written estimates for the repair work needed. HUD lists approved contractors and fee consultants on the organization's website.

Once the house is under contract and estimates are obtained, two different appraisals are needed. The first appraisal will be made on the current value of the home; the second appraisal will be an assessment of the value of the property after repairs are completed.

"The lender sets the loan at the value of the property when the repairs are complete," says Mansisidor. The mortgage cannot exceed the lesser of either the value of the home in its existing condition plus the cost of repairs and 6 months' worth of mortgage payments; or 110% of the estimated value of the home after repairs. The amount of the loan is also subject to maximum FHA mortgage limits, which vary from place to place.

Homebuyers may either hire a qualified contractor, or perform the repair work themselves. If the homebuyer completes repairs, the loan will only pay for materials. Leftover funds for repair can be used for additional repairs, or applied to the loan principle. Repairs must be completed on the home within six months of the purchase. The repair funds are distributed incrementally, and a HUD inspector reviews progress before more funds are released.

Homebuyers may close on the home with as little as 3.5% down. If the home cannot be lived in while renovations are in progress an additional six months of mortgage costs can be added to the loan so that the homebuyer may live somewhere else while repairs are being done.

VA Loans

VA Loans are a federal government lending program designed for Armed Force's members both active and reservist. The requirements have changed dramatically in the past few years. Previously, "credit scores were not required for VA Loans," says Mansisidor, "manual underwriting was applied to the VA Loan process.

Nowadays underwriters, loan officers, and lenders are more cautious. Most lenders now require a minimum 620 credit score. Mansisidor says in the majority of applicants who are approved VA Loans, "Debt to income ratio does not exceed 50%." He also cautions that "applicants should be two years removed from bankruptcy prior to their application date and there must be no late payments on debts for at least 12 months."

There are substantial advantages for those approved for VA Loans. "This is the only loan right now, other than first time homebuyer loans, that offers 100% financing," says Mansisidor. He adds, "No mortgage insurance is required for this loan because the government insures it. This can be a large savings, especially with VA jumbo loans."

The federal loan programs outlined above show that political leaders are working on improving the mortgage financing options available. Home buyers need to keep their credit scores, debt to income ratio, and objectives with home renovations in line with monthly earnings to ensure mortgage approval for both programs.

Elaine VonCannon is an award winning REALTOR with RE/Max Capital in Williamsburg, Virginia. She specializes in retirement and relocation in the Williamsburg, South Eastern Virginia area and in Virginia Estate properties. To learn more visit http://www.voncannonrealestate.com or http://www.estatesinvirginia.com.
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Friday, October 24, 2014

Log Cabins Can be a Renovation Project Too

Log cabins and the FHA 203k renovation program

Can I renovate my log cabin with an FHA 203k loan?

Why not, it is a home and in most cases has a foundation so it is a candidate for the program. It is odd but we get asked that a number of times each year. Again last Friday.

The client is purchasing a log cabin and wants to improve it. Here is a real log cabin example
Log cabin 1


Before scene.

Log cabin 2
Look at the new handrails on the finished project
Log cabin 1 front before repairs 





log cabin after improved

Log cabin 10

Another Log Cabin

Tuesday, October 21, 2014

Renovation Meets Expectations



A couple spends most of their renovation budget on a problematic kitchen.

Saturday, October 18, 2014

My 203k Consultant Isn't Doing a Good Job of Managing the Contractor!

By

Well, I don't know how to put this any other way but "it isn't the consultant's job to manage the contractor" so he or she shouldn't be expected to do that.

1) The consultant is a consultant when first hired. They will consult with you and help you develop a plan to renovate the property. A "scope of work" or "scope of renovation" so that every contractor you might have bid this job does so with the same list of items to complete.

2) Secondly the consultant can assist you in finding a lender or a contractor if you haven't found one. We typically know who can close these loans fast and who only talks a good talk. We can give you our "do not use" list of contractors but only in the event you have chosen one of them. Some contractors, a very short list, don't have a clue about contracting but have had the ability to pass the test and get their license.

3) The consultant can assist you in choosing a contractor from the bids that have come in on the project. The lowest bid may not be the best bid. We had one not too long ago where we bid the job at $82,000 and the first contractor bid over $100,000 and the second bid at $67,000. Of course the owner felt they wanted the $67,000 bid. That is fine but we asked the lender to fund the $82,000 as it was pretty clear to me that they forgot something or made an error and we are not here to bankrupt a contractor.

4) Once the loan closes we are "no longer the consultant" however we then work for the lender as the "draw inspector" on our projects.

No where in our job description does it say we have to, or are expected to, manage the contractor. On the contrary we "consulted" and told you right up front that "YOU are the boss, YOU are responsible to choose the contractor, YOU are responsible to call the contractor and communicate your pleasure or displeasure with the contractor.

As an inspector to monitor the progress we are typically out to see the property about once every 30 days so "the borrower", being there nearly every day, must call the contractor and insure they are on the job when it appears they aren't.

The Homeowner/Contractor agreement says very clearly that once the project begins the contractor should have someone on the project working each day until it is completed so feel free to call them and let them know when their employee(s) don't show up on the job.

Wednesday, October 15, 2014

FHA 203(K) Rehabilitation Loan, Is It For Me?

What is an FHA 203(k) Loan?

There seems to be a lot of confusion about the 203(k) loan from FHA. It is easy to see why, just look at the name, when I think of rehabilitation I think of a long drawn out battle. If I close my eyes and imagine a property that I would need a rehabilitation loan for I picture an old dusty mansion with exposed pipes, a broken down roof with mold damage everywhere, the hard wood floors are worn, warped and need replacing, there are holes in the walls exposing daylight through the bricks and I picture the only thing salvageable being the foundation and load bearing walls. In truth, the 203(k) is perfect for that type of home, but it is also a good program for other types of homes as well. Let's examine some of the options available with this wonderful program.

What is the 203(k)... Really?

One of the questions I'm most commonly asked is "Do you think that this property will pass FHA inspection?". My reply is always the same, as much as people seem to believe that FHA has their own super strict inspection, the do not. There is no inspection required by FHA. They do require that the house is insurable, and sometimes the insurance company will require a 4 point inspection, but FHA doesn't require it. The only other "inspection" required is the appraisal and as long as there are no obvious reasons for the house not to be in good livable condition it passes FHA guidelines. Why do I bring that up? Because the first thought I get when I think about a "rehabilitation" loan is a loan for properties that don't pass FHA's "required inspections", but the 203(k) is so much more than that.

If I were naming the 203(k) loan product, I would have used a slightly different term than rehabilitation. I would have called it the 203(k) Home Improvement loan. This loan can be used to modernize a perfectly livable home, or to change the flooring in a house because you would prefer bamboo flooring to carpet, or tile flooring to hard-wood because you like it better. There is a minimum $5,000 repair threshold in order to do the loan, that has to be met on structural changed, such as remodeling a bathroom and kitchen or changing the flooring. After that 5,000.00 threshold is met, you can even include items like new appliances.

Another great part of this program not many understand is that the 203(k) can be done as a re-finance to a home you already own, this truly makes it a home improvement loan rather than a rehabilitation loan.

Limitations

Of course this is still an FHA loan, so only owner occupied properties are eligible, though the program seems like the perfect fit for the investor buying a foreclosure property that needs some updating, investors need not apply. However a person looking to buy a foreclosed home as their primary residence is the perfect candidate for this type of loan.

Also the process for a 203(k) loan does take longer than a traditional FHA loan, but when you do move in you can have the house completed to the way you like it, with the repairs done by certified professionals and the cost rolled up into one payment with your mortgage.

All of the work must be properly permitted and completed by professionals that are licensed and insured, so there is no getting Uncle Larry to do the work for you to save money. For the right borrower, the 203(k) loan is a fantastic product and should be seriously considered as an option for those not 100% satisfied with the house they may be purchasing. I for one, am very excited about the opportunity to start offering these loans to my clients again.

If you are a realtor with a house that has been on the market for a while and is in need of some updating, it would probably be a good idea to talk about the 203(k) option with your favorite mortgage professional

Find more articles like this at Florida Mortgage Pro Get pre-qualified by me here
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Sunday, October 12, 2014

I Want to Do Some of the Work on My 203k Project - Can I?

 By

Can I do some of the work on my construction project to save money?

A question we get asked all the time. A borrower wants to see if it possible to gain some "Sweat Equity" so they want to do the painting, or they are a sheet metal specialist and want to do the heating and AC work to save money. 

The HUD Guideline says we, as consultants, must have enough in the construction bids to cover these items regardless of who does them. Therefore if the borrower wants to do the painting and the painting number in the bid specification says $3,000, the borrower thinks he can do it for $2,500 and save $500. 

That certainly sounds logical but... and this is a big but.... not a big butt. Sorry. In any case they quite often fail to take into account that the contractor has a profit and overhead number attached to the painting. It isn't all just paint and labor.  The contractor may be paying $2500 to a licensed contractor to do that painting and added his profit and overhead on top of that which is customary. 

The owner thought he would save $500 in this scenario but in fact all he saved was the contractor's profit and overhead which isn't up for bargaining. Even then, the rule for "self help" is that the labor the borrower is imputing cannot be paid out to the borrower so in fact they might save the labor which would pay down on the mortgage but the contractor's overhead and profit will stay with the contractor.

Most lenders want the borrower to be a licensed contractor before they can do "self help". Even then they make it difficult to the point it doesn't makes any sense to do "self help".

Thursday, October 9, 2014

Top Renovation Designers' Tips



The top 10 best designers' tips from House Hunters Renovations are listed.

Monday, October 6, 2014

Home Loan Options With Bad Credit Can Include an FHA Loan

The real estate sector was once the pride of the lending institutions, with generous offers made available to practically everyone. The idea was to increase their revenue from home loans, but as we all know now, that plan backfired and has left the economy reeling since. That fact has not removed the need for home loans, but given the financial realities today, home loans with bad credit have become more common.

With the events of the past few years, there are now less options open to those seeking to have home loans approved despite bad credit. Many of the institutions took such serious hits, they are now gone, while others no longer have the resources to make for sound lending at all.

When it comes to finding a loan to purchase a home, it is now considered a wise option to turn to the Federal Housing Authority, or FHA, and seek a loan from them. In light of the fact that the regular lenders got so much wrong in recent years, there is certainly a peace of mind that comes with the FHA association.

Advantages of FHA Loans

For those who are not aware, the FHA offers a high level of security to home buyers by providing assurance over the stability of their associate lenders. The security is provided through the government backing that its home loans with bad credit receive, with the fact that FHA loans are only issued by approved lenders with that government guarantee.

The principal reason that this level of security is considered so valuable is that it lowers the risk that lenders have to face. This then helps to build their confidence, which in turn helps to relax some of the terms of any loans, ultimately making it easier to get home loans approved despite bad credit.

There are no prizes for stating that getting a loan to purchase a home is not simple under any circumstances, what with the sheer size of the investment. So it can only be good news to learn the FHA loans are available at all.

Government Guarantee

In truth, the value of government approval is huge in the financial sector, so to have the Government provide a guarantee to home loans with bad credit is a huge boost to the lending industry as a whole. The backing provided relates quite literally to the provision of a guarantor for any loans. So, should the borrower fail to may repayments, and default on the loan, the government will buy back the loan from the lender at the existing market rate.

Of course, the benefit for those seeking to buy a home is to have a reliable source from which to get home loans approved despite bad credit. It therefore increases the numbers of people able to get a loan to purchase a home, which can slowly rejuvenate the housing sector.

Other Options

Despite such an ideal situation, it is still possible to see an application for home loans with bad credit rejected. There are, after all, criteria that need to be met before any loans are granted. It is worth considering other options, such as refinancing an existing home loan.

After years of repaying a loan, and with the fact that interest rates have fallen, there is some scope available with which to refinance the loan and save money. When attempts to get a home loan approved, despite bad credit fail, this is clearly a worthwhile option.

Of course, this is not available to first time buyers, making it necessary to get a loan to purchase a home. Shopping around can ensure the best possible is found, but there can be no doubting that home loans with bad credit from FHA approved lenders are amongst one of the better options available.

Donna Hammond is the author of this article. For more information about Bad Credit Unsecured Loan and Mortgages for Bad Credit please visit her website at QuickBadCreditLoans.com
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Friday, October 3, 2014

Do I Have to Use a 203k Consultant on My Project?

The short answer is No, you don't. However there is allot more to it than that. Since there were no consultants prior to 1994 and the program has been around since 1961, HUD says a 203k consultant isn't an absolute necessity. It is, however, REQUIRED by most lenders to facilitate the process.

Prior to 1994 there were many instances where the FHA 203k closing took 4-6 months, not all but way too many. Most Realtors and home buyers don't want to wait that long. A good consultant can shorten that time-line to 2-3 weeks and sometimes even more. This can allow the lender to close in 21-35 days pretty regularly.

There is a "self help" possibility built into the program but most lenders have redifined that to include licensed contractors who want to buy and fix up their own home. The bookkeeping may be too much for most.

If you have a streamlined k you are "in effect" being the general contractor and hiring the sub contractors for your project. If you have to switch this to a full 203k after you have started the process for some reason there are some lenders that will allow yout to continue being the general contractor and maintain your cost savings. Not typical, if you have this situation you may have to change lenders to achieve your goal. I would be happy to talk to your lender for you if you have this situation and see if we can't maintain your multiple contractor configuration.

Tuesday, September 30, 2014

Personal Finance Tips : How to Apply for an FHA Loan



Apply for an FHA loan, or Federal Housing Authority loan, by meeting the loan criteria, filling out the paperwork, and considering the income requirements.

Saturday, September 27, 2014

Why Should I Choose an FHA 203k Loan?

Lots of good reasons to choose from:
  1. your credit may not be stellar
    • Not a problem FHA has the easiest loans for a borrower to qualify
    • Even not to distant bankruptcy can be overcome
  2. your new home needs allot of work and you can't otherwise get a lender to make a loan
    • Most lenders won't make a loan on a home that has health and safety issues
  3. you would like to be sure your home gets repairs it needs as your spouse hasn't been good at fixing things as they might like to think they were as known from past experience
    • a contractor completes the work in a professional and workmanlike manner
    • the contractor has a timeline they should adhere to
    • you are the boss, the contractor works at your discretion and under YOUR supervision
  4. the home has been sitting vacant for two years or more with a known septic tank issue

What I didn't say:
  1. the loan amount doesn't go high enough...  
  2. the repairs exceed $35,000
    • Common myth based on the great marketing some lenders do that aren't qualified to do the Standard 203k and only do the "Streamlined k" 
    • the limit is based on the county limits for the county your home is located. We have several projects right now that are over $500,000 in construction cost. If you have any problem in figuring out this for your client please call us and we'll provide the answers to your delima
  3. there is foundation work or it needs a new foundation
    • some lenders have an "overlay" where they have decided they don't want to do foundation work - don't use that lender, if you need to know what lender is the best at these loans contact us, as consultants we can share our knowledge and there are some you need to stay clear of.
    • repair or replacement of foundations are commonplace
    • septic tank has been dry for over a year and needs work - not a problem for the "Standard 203k"